Cost of Raw Material Consumed and Sales of Scrap

The cost of raw material consumed refers to the amount of raw material used in the manufacturing process during a particular period, and it is calculated as follows:

Cost of Raw Material Consumed = Cost of Raw Material Purchased – Closing Stock of Raw Material

Using the information given in the question, the cost of raw material consumed is:

Cost of Raw Material Consumed = Rs 100,000 – Rs 30,000 = Rs 70,000

The sales of scrap refer to the amount received from selling the waste material generated during the manufacturing process. In this case, the sales of scrap are Rs 3,000.

Overheads and Selling Overheads

Overheads are indirect costs that are not directly attributable to the manufacturing process. They include costs such as rent, utilities, and salaries. The total overheads in this case are Rs 8,000.

Selling overheads refer to the costs associated with selling the manufactured goods, such as advertising, sales commissions, and shipping costs. In this case, the selling overheads are Rs 10,000.

Opening and Closing Work in Progress

Work in progress refers to partially completed products that are in the manufacturing process. The cost of opening work in progress is the cost of partially completed products at the beginning of the period, while the cost of closing work in progress is the cost of partially completed products at the end of the period.

In this case, the cost of opening work in progress is Rs 60,000, and the cost of closing work in progress is Rs 15,000.

Manufactured Goods

Manufactured goods are products that have been transformed from raw materials into finished products through the manufacturing process. The cost of manufactured goods is calculated as follows:

Cost of Manufactured Goods = Cost of Raw Material Consumed + Direct Labour + Manufacturing Overheads + Opening Work in Progress – Closing Work in Progress

Using the information given in the question, the cost of manufactured goods is:

Cost of Manufactured Goods = Rs 70,000 + Direct Labour + Manufacturing Overheads + Rs 60,000 – Rs 15,000

Therefore, the cost of manufactured goods cannot be calculated without knowing the direct labour cost and the manufacturing overheads cost.